Another multi-level marketing (MLM) program has been launched. It’s called Resorts 360 Vacation club and bloggers were quick to label it a possible scam. Resorts 360 launches after big trouble at another travel MLM called YTB Travel, when California Attorney General Edmund Brown sued them for “operating a giant pyramid scheme.”
Travel and tourism generates more than 7 billion dollars a year. It’s no surprise that work-from-home entrepreneurs want to cash in on those profits. Some of the programs have been total scams. They have charged people thousands of dollars and delivered little or nothing when the real value of the so-called products was analyzed. Not all home travel business opportunities are scams, some offer real value retail products in the travel market.
Now that Resorts 360 has been launched, many are asking if the program is another MLM scam or a real business. That is a fair question.
Sure, there are some issues with the Resorts 360 vacation club, but is it a scam? While the MLM company offers a real product, the Vacation Club membership they sell falls short of the memberships provided by competitors in the home business arena. The Resorts 360 program offers access to fewer resorts and members pay more money for a week-long condo vacation than their competitors. It doesn’t make it a scam, but it puts those hoping to make money marketing Resorts 360 at a disadvantage.
Resorts 360 members get access to around 4,000 resorts, while one competitor says they have more than 5,000 and another advertises more than 5,400 resorts. Resorts 360 Vacation Club members are offered condo vacation weeks starting at $399. That’s about $100 more than one competitor and $250 more than another. A member who takes just two weeks of vacation a year can spend an additional $500 a year with the new MLM vacation club. Over a ten-year period, that’s $5,000 more.
With fewer options and more expensive vacation weeks, you might think Resorts 360 could at least claim a price advantage in the market, but that’s not the case. While its competitors sell memberships with lifetime benefits (100 years), the longest membership available through Resorts 360 is just one year.
Over a ten-year period, vacation club benefits with Resorts 360 would cost $2,639 if renewed each year at the current price and $5,616 if paid at the current monthly rate. Lifetime memberships with their competition are $2,995 and $1,998. That means for $641 less, consumers can get access to over 1,400 more resorts, save $250 each on their lowest condo vacation prices, and still have another 90 years of membership benefits to enjoy or sell and transfer to someone else.
Offering an inferior product and charging higher prices does not make Resorts 360 Vacation Club a scam. As with any other purchase, the buyer should be vigilant and compare their options.
While the product is the product, many people just buy whatever it is to start a home based travel business and hope to start making money from home. The question is, can those hopeful internet millionaires really make money with Resorts 360?
Those looking to make money from home shouldn’t pay too much attention to Resorts 360. Marketing experts say the drawbacks they face with their product will virtually eliminate the appeal of their target retail market of travelers. Its higher prices will definitely not win over those who take the time to shop around. The maximum commissions earned are only $200 compared to both competitors paying $1000.
Resorts 360 promises residual income as memberships are renewed and monthly program payments are received. That seems highly unlikely, however. With other MLM programs that require people to renew, over 95% of members unsubscribe and do not renew. That’s because those people joined just to make money and when they don’t see profit, they move on.
As you can imagine, it could be very difficult to make a profit with Resorts 360. It costs about the same marketing dollars to make a profit of $200 as it does to make a profit of $1000. commissions? If it costs a member more than $40 to get someone to buy, that could put that member in the red and they also can’t plan to make up for that with renewals or passive MLM commissions. A new member will probably have to sign up 100+ people, just to get about five actively working in the business and making some profit.
While Resorts 360 is not a total scam, it is obvious that they have painted a much more rosy picture than MLM history suggests. Those looking for a quality vacation club membership will find more benefits and stronger memberships elsewhere. Those looking for a home business will also find better options with better vacation clubs and higher commissions. One competitor accepts credit cards for their lifetime membership and even offers payment plans with just $198 to start.